Falanx Share Discussion Threads

[on target] 18/5/2018 14:02

Tipped by who?

[nw99] 18/5/2018 13:58

Yes very bullish write up

[turbotrader2] 18/5/2018 12:39

Been tipped just now

[hamidahamida] 18/5/2018 09:35

I don't think anyone has clocked how big this V2 MidGard rns is, absolutely huge DM says there is nothing like this available on the market Just Read and THINK!!This cloud ready, out of the box, V2 MidGard technology 'stack' about to be released (has no competitor) can be used in almost every industry and is envisaged to displace hugely expensive licensed monitoring technologies. It will also simplify the complex and expensive data management and architectural issues that often eat millions of pounds of code and time and is expected to be significantly disruptive in the enterprise space.V2 MidGard is going to save millions for these big giants Hmm I see DOLLER signs for Falanx

[nw99] 17/5/2018 18:40

First the contract wins. There is one for MidGARD worth £230,000 on a one year contract with a Government department but there is an option to extend that to five years. Do the math! It has also won a big contract within the Ministry of Justice. The total value of new contracts win since the end of March is £900,000 - and remember gross margins on that work will be 50%+. As a bonus we are told that the pipeline is pregnant:

[nw99] 17/5/2018 18:39

A series of contract wins announced mean that Falanx (FLX) is clearly beyond that inflexion point where a ramp up in sales means that it is beyond breakeven. That means there is no more need to place shares which is good for we long standing and supportive shareholders. Moreover, with a high gross margin of 50%, it means that operational gearing can now kick in and that will start to drive a sharp ramp up in profitability. This good news is far from discounted in the share price, at 5.6p-5.7p the market cap is still less than £15 million. So the latest news...

[nw99] 17/5/2018 14:48

Just buy and hold this will be 8p in the blink of an eye

[kaka47] 17/5/2018 13:53

TW forecasting 1.3 Million profit in current year on top MidGARD V2 will start contributing later on, Imho me this forecast looks conservative That's 20p to 30p Share price

[sclper] 17/5/2018 13:10

Thanks Kaka.

[rathean] 17/5/2018 12:33

Agreed Maurice, as I said earlier they sugar coat their missives to the market and I read that as the same contract, repeated. But, if they can bed in with the MoJ then that alone is worth a few pennies on the price based on the potential longevity of the contract and renewals, and working their way into parallel departments within the Government. It's by far the best news, and a comment by paddy re: being taken private, I think that's worth keeping in mind. Having benefited from the CITY return to pe it'd be nice to get bought out twice before my summer hols :)

[nw99] 17/5/2018 11:04

Thx 8p looks very easy based on the projected news to follow

[mauricemonkey] 17/5/2018 11:03

I know a lot of you won't agree with me here but these two points:

A major UK Government department has selected MidGARD for an initial one-year period, extendable to five years, to provide monitoring over a large network of UK Citizen data, with an initial revenue value of £230,000 per annum.

· MidGARD has been selected by an organisation within the Ministry of Justice, working in partnership with ROC Technologies which has been instrumental in transitioning many organisations to cloud environments and will continue to do so with Falanx.

I read that as being ONE contract - the MOJ is a major government department with a large network of citizen data.


I can't work out of this is a great opportunity or the Emperor's New Clothes...

[kaka47] 17/5/2018 10:55

Falanx - Major contract wins underpin forecasts: strong buyBy HotStockRockets | Thursday 17 May 2018A series of contract wins announced mean that Falanx (FLX) is clearly beyond that inflexion point where a ramp up in sales means that it is beyond breakeven. That means there is no more need to place shares which is good for we long standing and supportive shareholders. Moreover, with a high gross margin of 50%, it means that operational gearing can now kick in and that will start to drive a sharp ramp up in profitability. This good news is far from discounted in the share price, at 5.6p-5.7p the market cap is still less than £15 million. So the latest news...First the contract wins. There is one for MidGARD worth £230,000 on a one year contract with a Government department but there is an option to extend that to five years. Do the math! It has also won a big contract within the Ministry of Justice. The total value of new contracts win since the end of March is £900,000 - and remember gross margins on that work will be 50%+. As a bonus we are told that the pipeline is pregnant:"Falanx is currently negotiating contracts with several highly advanced MidGARD sales opportunities within sensitive elements of the UK Government and the commercial sector for the protection sensitive data, with a prospective total contract value of approximately £700,000."Bring it on baby! Elsewhere there is an update on Falanx Cyber - Testing and Consultancy Services which includes the recently acquired First Base and we are told this unit has achieved more than 60 contracted customers since the end of March with contracts worth a total of £250,000. And that does not include the order book of £400,000 that came with First Base which "further underpins our expectations for the current year."There is a bit of geek blather about a release of a v2 of MidGard but the real import of this RNS is that forecasts for this year are solid. If anything the risks are to the upside.Now you will remember that before First Base was bought we were expecting a PTP of £500,000 this year for Falanx. Last year First Base made profits of c£600,000 and it is clearly growing. And with some synergies (i.e. duplicated overheads to be cut) we cannot see how our forecast of a PTP of at least £1.3 million in the year to March 31 2019 cannot be met or beaten. Next year we continue to look for £3 million+ and a stock growing like this in a sector like cyber security should be on a mid teens PE.That is why this is a STRONG BUY at up to 6p with an initial target of 8p but that looks increasingly to be far too low.This article first appeared on HotStockRockets - to catch the next red hot share tip from the HotStockRockets team for just £5 click HERE

[sclper] 17/5/2018 10:46

Can anyone post the latest missive from shareprophets/Hot Stock Rockets?

[nearlythere] 17/5/2018 10:31

Yump

There was some talk that a % of the contracts value is provided up front so that should help a bit but now it really is down to regular contracts.( not 1 every 3 months).

This comment imo will determine the outcome.

"MidGARD Pipeline

Falanx is currently negotiating contracts with several highly advanced MidGARD sales opportunities within sensitive elements of the UK Government and the commercial sector for the protection sensitive data, with a prospective total contract value of approximately GBP700,000."

I assume it means that the contracts are at a highly advanced stage .

If they can convert the 700k pipeline into signed contracts in coming weeks then perhaps they have turned the corner but if nothing happens then either the pipeline is leaking even at these advanced stages or it means "near future "

[paddyfool] 17/5/2018 10:27

We are in the world of arr and mrr here. The error that Falanx made was to not go the PE route. This business was and is to immature to withstand the scrutiny that being listed brings. Being a PE investment has a small focused investor with deep pockets helping you all the way. Being a listed entity has a large, largely ill informed investor base that cannot help you. In a PE world the issue is not about cash conversion but how much cash is needed to achieve strong top line growth. This is where the true error lies, a firm like this needs cash to grow its platform and become truly very valuable, it needs to be PE owned and looking for a series a raising again with PE.I think this will get taken private within the year. The question is at what price. The underlying question is can they grow it enough in that time to make a great valuation. Will they ask for more cash from the investors? Who knows? Will they need more cash? The answer is absolutely yes, will it come from aim or will it come from PE?

[colinzeal] 17/5/2018 10:18

HSR have this as a strong buy with t/p at 8p+.

[paddyfool] 17/5/2018 10:12

The other thing to note, is that if this is truly a platform play, then the revenue multiples get very silly at 25 plus very easily.

[colinzeal] 17/5/2018 09:24

One of the reasons I hold this is for the takeover possibility...I can see a bid coming in before the end of the year on improved figures.

[kaka47] 17/5/2018 08:37

Work bit harder at your deramping people need to load up

[paddyfool] 17/5/2018 08:33

I have been very negative on this in the past. There is a lens to see this through which is positive. In the PE world PE houses are desperate for companies in this space. I have said before that Falanx should have gone that way and not been listed. So ...firms like this which can show strong growth are being bought at 8 to 14 times revenue. It is not out of the question that a PE house will buy this firm if it can demonstrate stronger and only slightly stronger at that growth. Do the maths and you see the upside nearterm is quite high.

[yump] 16/5/2018 23:46

Well its easy to read this without thinking about the possible conclusion:

"new contract wins worth approximately GBP0.9m of new revenue since the completion of the acquisition of First Base at the end of March 2018"

0.9m in a month and a half and they say 'new revenue'.

If its genuinely new, as in incremental revenue, then that's a whole new game.

However that might need to be tempered by the fact that its the new budget year for contracts, so the period of contract signing may well be weighted heavily towards the April-June period.

[nearlythere] 16/5/2018 21:26

On target
It is a fair question but I mentioned 3 to 3.5p this morning

The last placing was at 4.5p and Imo no company issues shares at near all time lows if breakeven is close.

At the update management have not mentioned breakeven or cash,so imo I see breakeven sliding 12 24 months. Therefore after raising 2 million last May @6.75p another 1 million plus in March 4.5p if they have to return to market Having failed to reach breakeven Imo 3.5p is reasonable.
Of course if they start to convert the pipeline into contracts at a faster rate then things changed but so far that seems be taking longer than I expected.

[on target] 16/5/2018 20:59

nearlythere,

For a start why were you talking about 2.5p placings this morning? What did you base that on? The last placing was at 4.5p.

[rathean] 16/5/2018 20:45

I agree with nearlythere, they sugar coat every comment and misdirected through ambiguity. The numbers are contradictory but despite that they've made some bold claims that if half true, particularly about potential Government dept contracts then we could see a re-rating.Higher risk than it should be imho.